Apple’s Strong Showing in India: CEO Tim Cook Shares Optimism
Apple reported its Q1 2023 financial results on Thursday, February 2, revealing a revenue of $117.2 billion for the December quarter. Despite facing several challenges such as foreign exchange difficulties, supply limitations of the iPhone 14 Pro and iPhone 14 Pro Max, and a difficult global economy, the company saw success in markets including Canada, Brazil, India, Indonesia, Mexico, Spain, Turkey, and Vietnam.
During the earnings call, Apple CEO Tim Cook spoke positively about the Indian market, noting that the country saw record sales in various areas during the quarter, including all-time high iPhone revenue, growth in the number of active iPhones, and increased adoption of services like Apple Business Essentials, AppleCare, Tap to Pay, and Apple Financial Services.
Recent developments in the Indian market include Apple’s efforts to diversify its production units beyond China, with India as a potential hub, and the appointment of Tata subsidiary Infiniti Retail as an Apple franchisee. The Indian government has also given approval to 14 Chinese suppliers to set up assembly plants in the country, while key supplier Jabil Inc started manufacturing AirPods components in India. Apple aims to increase its production in India to 25% of its total output, up from its current 5% to 7%.
Cook expressed his excitement about the Indian market, saying that the company is putting a lot of effort into the market and has introduced financing options and trade-ins to make its products more accessible. He compared the Indian market to China, saying that a similar scaling strategy is being followed and he expects the company to continue growing in both markets.
According to a report by JP Morgan, Apple may manufacture one out of every four iPhones in India by 2025, with around 25% of all Apple products, including the Mac, iPad, Apple Watch, and AirPods, expected to be produced outside of China by the same year. The company exported over $2.5 billion worth of iPhones from India during April-December 2022, double the exports from the previous financial year.